Metalicity Limited announce that the Company will undertake its first steps into exploring its newly acquired 100% owned Mt Surprise Lithium Project (EPM 28052) located circa 57km northeast of the town of Mt Surprise, 165 km west of the major centre of Cairns in North Queensland and is serviced by excellent infrastructure in the area with easy access. The Company's exploration team arrived on site over the weekend and have begun extensive fieldwork activities. The geology of the area is characterised by the Silurian-aged Blackman Gap Complex, a medium to coarse-grained biotite-muscovite granodiorite, granite and pegmatite which also hosts the Gingerella Site.

The granite is overlain by various Carboniferous-aged volcanics including the Double Barrel andesite and tuff as well as the Gingerella rhyolites and ignimbrites. The sampled outcrop is described as southeast of a quarry working the Double Barrel andesite but specifically along a red/pink altered contact of the underlying Blackman Granite and/or pegmatite. Lithium minerals were described as lepidolite (lithium mica); however, the mineralogy was never confirmed.

Copper appears to occur as malachite-azurite-fluorite mineralisation and occurs within 30cm wide quartz-stockworked or vein contacts between a rhyolite dyke and early Silurian granite of the Blackman Gap Complex. Many of these veins were exposed in historical costeans across a 1 - 1.5 kilometre long, north-south trending, quartz-fluorite vein system hosted by altered and greisenised granites (Dargalong Metamorphics). Historic gold samples were collected from gossanous epithermal quartz veins or structures hosted within granites from a number of locations across the tenement.

This field programme will begin with a thorough field review of the Mt Surprise area including detailed mapping and collection of rock chip samples targeting new pegmatites and potential lithium mineralisation across the extensive land holding particularly along the prospective contact. It is important to note that many unspecified dykes have been interpreted by the Geological Survey of Queensland that will be investigated for pegmatites as part of the upcoming field programmes. Metalicity regards the Mt Surprise Project as prospective for lithium mineralisation and that the granites in the area are clearly fertile to produce LCT (Lithium-Caesium-Tantalum) pegmatites.

Other lithium deposit styles such as rhyolite hosted deposits are also prospective given the Mt Surprise area contains similar host rocks within a volcanic caldera setting to the Rhyolite Ridge lithium deposit in USA. The field programme will also take the opportunity to explore for base metals, including copper as well as gold mineralisation occurrences and prospectivity identified from the desktop historical review. Information collated from the desktop review will assist in accelerating exploration targets for further investigation over a large tenement area.

Samples will be transported to an analysis laboratory in Townsville testing for Lithium and other valuable minerals as well as other pathfinder/indicator elements. In addition, several samples will undergo mineralogical analysis to determine the minerals present.